BTCUSD - Day Traders Chart Setup
Moving averages:
Green = 50dma
Red = 200dma
Orange = 9ema
Black = 20ema
Is bitcoin on a tear or what?! Thats right bullish since the pullback to $5500 and providing trade set-ups along the way. As the action will continue to be with Bitcoin I think it's important we take another look especially for those who missed the buy opportunities as we were calling them out.
It is important to be aware the the CME (Chicago Mercantile Exchange) is predicted to have futures trading available on bitcoin by the second week of december - Has anybody ever heard the term, Santa Clause Rally!
What this means is that the billions of dollars on wall street will be able to get more, safer and sanctioned exposure to the lucrative crypto market - Billions of dollars.... the current market cap of bitcoin could easily double, and 100 billion $ is really peanuts in the grand scheme of global economics. If I recall crypto is 0.1% of total money - let's double it into January, k? Thanks!
Daily
In just a few short days traders and investors saw the price of bitcoin climax at approximately $8000 before rapidly declaining to around the $5500 range. Then swiftly shooting back up after setting a double bottom or W formation.
Looking at the daily time frame, the price caught support at exactly the 50dma, the wicking here was the buy signal of all buy signals and led to the price reclaiming the 9 and 20ema. Resistance is found at pivot r1, $7210 breaking bove this level gives way to the $7300's and beyond (All time highs)
The daily stochastic has quickly pushed back into uptrend pulling the RSI along with it. Key support is the 9 and 20ema, and tests of these moving averages is an opportunity to add or take a position setting a stop loss just below, if you aren't already in it.
4 hour
The 4 hour time frame is cause for some pause as the stochastic RSI is extended, however, a test of the 80 level will be indicative of sustained momentum, keeping the trend going. I lean towards the side of caution in providing these calls.
With resistance being found at pivot R1 on this time frame a dip back to the moving averages is not at all unlikely - This would be a back test of 7k, price verification. Key support is the 9ema here, approximately $6921.
1 hour
The 1 hour time frame is on the verge of producing a golden cross which is an extremely bullish signal, the 50dma crossing above the 200dma. The long term the time frame the more bullish the indicator!
So far price has found support at the 9ema but could continue to dip as low as the 20ema, a perfect opportunity to scale, longer and would see the stochastic RSI fully cycle. While momentum wanes make note of the uptrend in the RSI - it's holding the level, few sellers.
Long story short this could be one hell of a bull run,
Bullish Above: $7320
Bearish Below: $6707
RISK TRADE: Scale long here adding all the way the 1 hour 20ema. Set stop loss just below.
Don't forget to use stop losses!!!
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Follow at your own risk, Not a financial adviser, understand the risks associated with trading and investing. Manage your own Risk - in other words you could lose it all and it's your own fault.
